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MUNCIE – The number of blighted houses to be demolished in East Central Indiana with federal Hardest Hit Markets funding has increased to more than 225.

Lt. Gov. Sue Ellspermann last week announced that New Castle, Hartford City, Dunkirk and Montpelier had been awarded $700,000, $507,000, $176,000 and $61,000, respectively.

In an earlier round of funding, Muncie received $2.8 million, which it will use to knock down 154 vacant and abandoned houses.

New Castle plans to raze three dozen homes.

"We have five nonprofit entities who have agreed to take title to the properties, and their end-use plans include pocket parks, affordable housing (redevelopment) and providing adjacent homeowners additional green space," said Kevin Polivick, director of the Interlocal Community Action Program in New Castle.

Hartford City plans to demolish more than two dozen homes, Dunkirk at least 10 and Montpelier three.

Portland Mayor Randy Geesaman told The Star Press his city didn't have enough time to fulfill all the requirements to apply for the funds before the deadline. But not all of Indiana's Hardest Hit funds were awarded in the first several rounds, and Portland intends to apply for some of the leftover money.

Portland has identified at least 38 houses that should be eligible for the demolition dollars, the mayor said.

Winchester Mayor Steven Croyle, whose city also was not awarded funding, couldn't be reached for comment.

The Indiana Housing and Community Development Authority is making $75 million available for demolitions in Indiana.

While the main purpose of the $7.6 billion federal "Hardest Hit Markets" initiative is to aid unemployed homeowners in paying their mortgages in 18 states hit the hardest by the housing/foreclosure crisis that started in 2007, some of the money can be spent on blight elimination.

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A heavily damaged home filled with garbage and debris at 823 East Jackson St. File photo by Jordan Kartholl.
(Photo: Jordan Kartholl / The Star Press)

Abandoned housing can fall quickly into a state of blight and attract undesirable and unlawful activity, including meth labs, wild animals and arson. That negatively impacts neighborhoods by reducing property values and draining local government resources.

The city of Muncie has not yet started demolitions. It is still acquiring the properties.

To be eligible for the money, cities must find partners willing to take ownership of the empty lots that will be created by demolition and do something constructive with them.

Muncie's partners include adjacent homeowners and nonprofit groups such as Habitat for Humanity and PathStone.

A handful of the buildings slated for demolition in Muncie have been identified as methamphetamine houses, including one at 1401 S. Burlington Drive, where police found an active meth lab cooking a year ago this month, when three people were arrested.

The funding is competitive, and points are awarded for meth houses. Other points are awarded based on a property's habitability; proximity to a brownfield site; its end use after demolition; presence of lead-based paint, mold and asbestos; number of police/fire calls to the address, and the identification of a community partner.

Conditions at the properties on Muncie's demolition list include fire damage; rotten, sagging and collapsing roofs; leaning structures in danger of collapsing; open or broken doors and windows; leaning chimneys; crumbling foundations and holes in roofs.